Virtual environments have the potential to be an important teaching tool for emotionally-sensitive issues capable of producing a sense of presence, perspective-taking and introspection in users in a risk-free, rapid feedback experience. In designing such experiences, it is essential that users are regularly engaged in a collaborative design process. However, engaging in design, development and evaluation can in itself provide a learning experience. Here, we present our approach to engaging children in the design, development and evaluation of a virtual learning environment, specifically a Serious Game, focused on inculcating empathy, ethical reasoning and reflection for coping with bullying. We demonstrate that children’s involvement not only contributed to an improved virtual environment, but significantly, engaging in the design process provided children with a novel and effective learning opportunity. Through using innovative child-centered participatory design practices, this research provides perceptive insights into how engaging children in design can be employed as a learning experience for emotionally-sensitive learning as well as an approach to gathering user design input. The material outlined in this article is directly linked to virtual worlds for positive change— meeting the needs of children, empowering them to be consulted and take responsibility for issues that affect them at school.